Bootleg baccy smugglers are threatening the livelihood of corner shopkeepers on Teesside.

A fifth of small businesses in the North-east and Yorkshire are considering closing as a result of lost sales to tobacco smuggling.

And almost half are aware of counterfeit tobacco products in their area.

The figures were revealed in a survey by the Tobacco Alliance which represents 17,000 independent retailers across the UK through its Retailers Against Smuggling campaign.

Dave Longstaff, 65, of Marton, owns a shop on Borough Road in Middlesbrough and said cigarette sales accounts for 18-20pc of his trade.

He said: "They have been doing it for years and it's just as bad now as it's always been.

"I know a couple of local people who sell them. I don't know how much it affects my sales because I don't know how many I might be selling if they weren't doing it."

John Abbott, a Darlington retailer and Tobacco Alliance Spokesman for the North East and Yorkshire, said: "These findings are extremely disturbing and demonstrate how much the comparatively new problem of fake tobacco products is affecting our society.

"The livelihoods of independent shopkeepers like me all over the UK are already under threat because of the effects of tobacco smuggling on our sales.

"The ready availability of counterfeit products will only add to these problems."

The survey found that 21pc of independent retailers in the North-east and Yorkshire are considering closing their business as a result of the effects of tobacco smuggling on their sales. And 32pc of those surveyed said that they have to consider reducing staff.

Mr Abbott added: "According to the survey, 74pc of retailers nationally believe the way to tackle the problem of tobacco smuggling is for the Government to reduce or freeze the tax on tobacco.

"This would bring tax levels more in line with the EU, eradicating the huge price difference between tobacco here and that in mainland Europe, and so remove the incentive for smugglers.